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Ainsworthbibey Cleaners

  • Posts: 29
late payment charges
« on: March 26, 2012, 07:11:04 pm »
Hi All
looking for some help im doing a tender for a company to clean communial areas and was wondering if i should put in my terms and conditions a percentage on late payments. if so how much should i charge please.


Many thanks paula
Ainsworthbibey Cleaners

rah

  • Posts: 670
Re: late payment charges
« Reply #1 on: April 02, 2012, 07:04:33 pm »
The goverment set out legislation with advice on what should be charged, it gets complicated with no of staff etc.

Most companies I know, have a standing charge

https://payontime.co.uk/late-payment-legislation-interest-calculators

hope it helps.

Rob.
Life used to be full of up's and downs....now i hardly ever get up a ladder :) .

Ainsworthbibey Cleaners

  • Posts: 29
Re: late payment charges
« Reply #2 on: April 03, 2012, 12:28:00 pm »
Hi Rob

Thank you so much this has help a great deal x

Paula

BDCS

  • Posts: 4777
Re: late payment charges
« Reply #3 on: April 03, 2012, 07:49:04 pm »
My debt recovery co supply the terms that go on my invoices

cml

  • Posts: 181
Re: late payment charges
« Reply #4 on: April 06, 2012, 08:28:53 pm »
There are 2 forms you can take

1.   Statutory
2.   Contractual

There are guidelines for late payments which can be followed as stated above.  However should you wish to take the Contractual route and make it part of your standard terms you may wish to put this on your invoices where it can be clearly viewed and not hidden on the back or in the middle of small printed text.  In deciding how much percentage to charge you need to establish how much and long  it would cost you in time and resources undertaking a debt analysis each month.  There is no stipulation as to percentage or a fixed amount however should you chose a percentage you must explain how it is applied. i.e the sum of X% will be charge on invoices exceeding 30days etc.,

I hope this help.  Please refer to the link above for insight on how interest is charged.  Also note that you cannot combine both methods.  You may want to seek advice before deciding on which method to use.  Nonetheless you will always have the right to a statutory recourse for chasing late payments under current legislation.

I hope this helps


Ainsworthbibey Cleaners

  • Posts: 29
Re: late payment charges
« Reply #5 on: April 07, 2012, 01:43:24 pm »
Hi there


Thats a huge help thank you for all your input x

Paula